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Explain Cost Per Case- Inpatient Capitated Contract
You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided.Budget ActualInpatient Costs $12,568,500 $16,618,350Members 42,000 42,000Admission Rate 0.070 0.095Case Mix Index 0.90 0.85Cost per Case (CMI = 1.0) $4,750 $4,900
Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?
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